Egypt’s sovereign bond issuance is expected to be priced at about 5.875 per cent, according to bankers close to the deal.

The bond issue will be about $1bn, although could be increased in size if there is strong appetite for the deal. The deal is being arranged by the UK’s HSBC and the US’ Morgan Stanley.

Investors have until the end of the day on 21 April to make offers to buy the bond, with final pricing and issue size expected to completed the following day.

The deal will have a tenor of 10 years and is the first issue by Egypt since it raised $1.5bn in 2001. Moody’s has rated Egypt’s debt at Ba1, or below investment grade. The bond issue is part of the government’s plan to fund a budget deficit projected to rise to 8.4 per cent of gross domestic product (GDP) this year.